What is a contribution action in an insurance litigation case?
A contribution action in an insurance litigation case is a legal action taken when more than one person, company, or organization is found liable for causing an injury. This type of legal action is often used when an insurance company for one of the defendants decides to take legal action against the other involved party. In California, an insurance litigation case can involve two or more defendants and one plaintiff. In these cases, the plaintiff can choose to file a contribution action against one or more of the defendants, instead of or in addition to a direct action against one defendant. This is done because the plaintiff believes the defendants are all responsible. In a contribution action, the court may decide to allocate damages among the involved parties according to the degree of their fault. For example, if one of the defendants is found to have had a greater involvement in causing the injury than the other defendants, they may be ordered to pay a greater portion of the damages. All of the defendants will then be responsible for paying their portion of the damages, either through their insurance policy or personal funds. The determination of responsibility in an insurance litigation case can be particularly complicated. A contribution action is one way for a plaintiff to ensure that all of the defendants involved in the case pay their fair share of damages, regardless of how much fault each defendant is determined to have.
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